1. **Problem statement:**
We have a normally distributed variable (years of schooling) with standard deviation $\sigma = 3.5$ years.
A confidence interval (CI) for the mean is given as $(13.8, 15.9)$ based on a sample size $n=64$.
We want to find:
a. The confidence level $1-\alpha$.
b. The minimum sample size to reduce the margin of error (ME) to 0.9 years.
c. The minimum sample size to reduce the length of the CI by 20%.
2. **Formulas and rules:**
- The confidence interval for the mean when $\sigma$ is known is:
$$\bar{x} \pm z_{\alpha/2} \frac{\sigma}{\sqrt{n}}$$
- Margin of error (ME) is:
$$ME = z_{\alpha/2} \frac{\sigma}{\sqrt{n}}$$
- Length of CI is $2 \times ME$.
- To find $z_{\alpha/2}$, use the margin of error and known $\sigma, n$.
- To find sample size $n$ for a desired ME:
$$n = \left(\frac{z_{\alpha/2} \sigma}{ME}\right)^2$$
3. **Step a: Find confidence level**
- Sample mean $\bar{x} = \frac{13.8 + 15.9}{2} = 14.85$
- Margin of error $ME = 15.9 - 14.85 = 1.05$
- Using $ME = z_{\alpha/2} \frac{\sigma}{\sqrt{n}}$:
$$z_{\alpha/2} = \frac{ME \sqrt{n}}{\sigma} = \frac{1.05 \times 8}{3.5} = \frac{8.4}{3.5} = 2.4$$
- Find confidence level from $z_{\alpha/2} = 2.4$:
The two-tailed confidence level is $1 - \alpha = 2 \Phi(2.4) - 1$ where $\Phi$ is the standard normal CDF.
- Using standard normal tables or calculator, $\Phi(2.4) \approx 0.9918$.
- So confidence level:
$$1 - \alpha = 2 \times 0.9918 - 1 = 0.9836 = 98.36\%$$
4. **Step b: Minimum sample size for margin of error 0.9**
- Use formula:
$$n = \left(\frac{z_{\alpha/2} \sigma}{ME}\right)^2 = \left(\frac{2.4 \times 3.5}{0.9}\right)^2$$
- Calculate numerator:
$$2.4 \times 3.5 = 8.4$$
- Divide by ME:
$$\frac{8.4}{0.9} = 9.3333$$
- Square:
$$9.3333^2 = 87.11$$
- Minimum sample size:
$$n = 88$$ (round up to nearest whole number)
5. **Step c: Minimum sample size to reduce length by 20%**
- Original length $L = 2 \times ME = 2 \times 1.05 = 2.1$
- New length $L_{new} = 0.8 \times 2.1 = 1.68$
- New margin of error $ME_{new} = \frac{L_{new}}{2} = 0.84$
- Use formula for $n$:
$$n = \left(\frac{z_{\alpha/2} \sigma}{ME_{new}}\right)^2 = \left(\frac{2.4 \times 3.5}{0.84}\right)^2$$
- Calculate numerator:
$$2.4 \times 3.5 = 8.4$$
- Divide by new ME:
$$\frac{8.4}{0.84} = 10$$
- Square:
$$10^2 = 100$$
- Minimum sample size:
$$n = 100$$
**Final answers:**
- a. Confidence level is approximately 98.36%.
- b. Minimum sample size for ME = 0.9 is 88.
- c. Minimum sample size to reduce length by 20% is 100.
Confidence Interval 7557A0
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